NEW DELHI: The price situation in the country remains comfortable and it is unlikely to see any significant surge against the backdrop of the West Asia conflict, top officials said, asserting that the Centre is keeping a close watch and working to ensure steady supplies.Key ministries are tracking the situation daily and the Prime minister’s office (PMO) is keeping a close tab and has mounted efforts at the “highest levels” with several countries to secure supplies ranging from energy to fertilisers, officials said. Review meetings are being held on a regular basis at the PMO to identify any stress points and take immediate remedial action.The assessment is that the impact on inflation due to surge in global crude oil prices for now would be within the “tolerable limits” as pump prices for diesel and petrol have not been raised. The price of Brent crude crossed the $92 a barrel mark on Friday and expectations are that it could soar higher, depending on the extent and duration of the conflict but measures announced by the US on Russian oil could help ease supplies to some extent.A latest finance ministry report said that scenario building exercises on the macroeconomic impact of higher oil prices suggest that crude oil prices must remain above $100 per barrel for a sustained period for macroeconomic aggregates to reflect the strain.
Officials said the Centre has also taken note of comments that the conflict could be “long drawn” and has charted plans accordingly to deal with the situation. “Discussions are on at the highest levels for tapping alternate sources of supplies of gas and oil,” said an official, stating that these supplies could arrive in 35-40 days.Latest data shows that retail inflation was at 2.8% in Jan, the first print under the new data series which was released in Feb, with several new additions and weightage of food being reduced. The number is within the “comfort level” of RBI.On the fertiliser stock situation, the official said that they remain “manageable” for the next sowing season, pointing out that urea stocks in March this year were higher than last March. “There are discussions to secure supplies and ensure that there is no strain,” said the official. The only worry for now is the country’s exports, with shipments affected by the ongoing conflict. Officials said the commerce ministry is taking steps to ease the pain for exporters as well as chalking out alternate markets as part of the diversification plan.
